Business news from Ukraine

POROSHENKO INVITES CHAIR OF DP WORLD SULTAN AHMED BIN SULAYEM TO JOIN NATIONAL INVESTMENT COUNCIL

KYIV. Oct 17 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has held a meeting with Chairman of DP World Sultan Ahmed bin Sulayem.

Poroshenko emphasized that it was the right time and right place to invest in Ukraine and said that global business was interested in our state, the Ukrainian president press service reported.

He noted that the Ukrainian authorities were doing everything possible to encourage foreign investors. For this end, the National Investment Council under the president of Ukraine has been established.

The head of state invited Sultan Ahmed bin Sulayem to join the Council.

For his part, Sultan Ahmed bin Sulayem thanked for the invitation and said he was interested in the development of cooperation with Ukraine, which has huge transport resources and remarkable human potential. “We consider Ukraine as a state that will connect us with Europe. That is why we want to work here,” he said.

Poroshenko praised the signature of the memorandum between the Ministry of Infrastructure of Ukraine and DP World. This document provides for the immediate establishment of the joint expert group for the analysis of existing opportunities and mechanisms of investments in our state.

The head of state instructed the Ministry of Infrastructure of Ukraine to take this work under personal control and report on the progress of implementation of the project.

KYIV MAYOR IN GERMANY MEETS INVESTORS INTERESTED IN COMPLETION OF PODILSKO-VOSKRESENSKY BRIDGE

KYIV. Oct 17 (Interfax-Ukraine) – Kyiv Mayor Vitali Klitschko in Frankfurt, Germany, held a meeting with potential investors interested in the implementation of a project to complete the Podilsko-Voskresensky Bridge in Kyiv.

The press service of the city mayor reported that the bridge has been built since 2003.

“With enough financing it will take around three years to launch the bridge. Then we can speak about subway. The issue of subway to Troyeschyna remains important for us. We will complete the project. We will not be able to launch subway to Troyeschyna without the bridge,” Klitschko said.

The mayor expressed hope that with the help of Germany Kyiv would find investors and “German companies will join the implementation of this important and strategic project for Kyiv.”

Kyiv city has only five motor way bridges across the Dnipro River and they are the most congested sections of the city road network.

Klitschko thanked Germany for the help provided to Kyiv. He pointed out effective cooperation with State Secretary of the Ministry for Transport and Digital Infrastructure of Germany Rainer Bomba. The mayor said that Kyiv’s authorities would make everything that depends on them to finish the bridge and make Kyiv more comfortable for driving.

German businessmen said that they are ready for further talks and consultations to clarify all issues linked to the implementation of the project. They agreed to conduct a technical and financial study of the project and specify some legislative issues to find out if it is possible to build the bridge under European technical requirements.

“The next meeting to discuss the implementation of the project is to be held in Berlin in November,” the press service said.

NIBULON OWNER BACKS LARGE AGRICULTURAL PRODUCERS AFTER LAND REFORM

KYIV. Oct 17 (Interfax-Ukraine) – The land reform in Ukraine should take into account large commodity production and its retaining after revoking a moratorium to sell farmland, the owner of Nibulon agricultural company Oleksiy Vadatursky has said.

“Without passing relevant legislative base that would provide for medium and transparent mechanism for switching to market relations, we would gain return to cultivating land in sections,” the company said in a statement citing Vadatursky.

He said that if the moratorium is annulled, large land parcels will be scattered, which would decrease efficiency of farmland use.

“Of course, each land owner has the right to freely use its ownership. When you are the co-owner of a large stock of land, you should take into account opinions and interests of all. The decision of one person automatically concerns other land owners and influences them,” he said.

Vadatursky said that today a lot of land parcels are cultivated without understanding who is the owner of them. There are many land parcels cultivated by one company, but in fact they have been resold to 10 other companies.

He said that Ukrainian legislation should foresee the right to lease land for a long period of time (20-25 years and more) with the right of getting land lease fees in advance for the whole period when the agreement is in effect.

He said that lawmakers must protect land owners, leasers and investors. Bills must be published to discuss them with the public and experts.

PM: UAE EXPERIENCE USEFUL FOR UKRAINE IN CONTEXT OF UKRAINIAN CUSTOMS REFORM, CREATION OF INDUSTRIAL PARKS

KYIV. Oct 17 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman has expressed his interest in experience of the United Arab Emirates (UAE) in creation of specialized economic zones and invited representatives of the UAE to take part in the privatization of Ukrainian state-run enterprises.

The press service of the Ukrainian government reported last week that Groysman met Board Chairman and CEO of DP World (UAE) Sultan Ahmed Bin Sulayem. The sides discussed opportunities and potential spheres for attracting investment from the UAE to projects in Ukraine.

The prime minister welcomed investment plans of UAE in Ukraine.

Among potential spheres for investing in Ukraine is energy, agriculture, infrastructure, IT and pharmaceutical sectors, Groysman said.

“We are interested in developing infrastructure, logistics capabilities of the port infrastructure. We are ready to provide help and accompany those projects that would be interesting for you in Ukraine,” he said.

The prime minister also invited UAE representatives to participate in the privatization of Ukrainian state-run enterprises.

He said that the creation of high-quality business climate and success of investors is one of the top priorities of the Ukrainian government. Groysman said that soon the Investment Support Office starts operating in Ukraine.

In turn, Sultan Ahmed bin Sulayem said that there are many opportunities for cooperation in Ukraine. He said that at a meeting with Ukrainian Infrastructure Minister Volodymyr Omelyan a letter of intent was signed. An agreement on cooperation between P&O Maritime and Odesa seaport was reached. A memorandum of cooperation with DP World to develop the port sector in Ukraine was also signed.

He also expressed interest in creating specialized economic zones in Ukraine. He said that he is ready to share experience in operating the customs service in the UAE.

NEW BUSINESS CONTRACTS SIGNED IN VILNIUS

Lithuania is an old partner of Ukraine in the political, economic and cultural areas. In particular, the two countries have actively been developing their business contacts: the two largest national business organizations – the Ukrainian League of Industrialists and Entrepreneurs (ULIE) and the Lithuanian Confederation of Industrialists – regularly join efforts to hold forums, B2B meetings, education trainings for Ukrainian businesses, and exhibitions.

Ukrainian manufacturers once again had an opportunity to establish business contacts at a meeting of the Lithuanian-Ukrainian Business Council in Vilnius on September 27-30, and some of them have already signed relevant contracts. For the first time the event has been held with the participation of the Chambers of Commerce of both countries, a large number of strong enterprises and small- and medium-sized businesses.

Representatives from such sectors as aircraft construction, food industry, consulting – Antonov Enterprise, Zhytomirsky Lasoshchi confectionery, UkrVodoKanalEcologiya, and the Exporters Club – discussed prospects for cooperation with partners.

The ULIE and the Lithuanian Confederation of Industrialists signed an additional agreement foreseeing greater efforts in priority areas – arranging workshops to prepare Ukrainian companies for entering the EU markets and engaging Ukraine’s higher education institutions in cooperation under the ERASMUS+ programme. The agreement focuses on accelerating the adaptation of Ukrainian producers to the standards of the European market and Lithuania’s assistance in their successful entry into the highest possible number of EU national markets.

During the visit, Ukrainian delegates also participated in the 25th international exhibition Baltic Fashion & Textile Vilnius. This year Ukraine has for the first time had one booth shared by 30 Ukrainian enterprises. The event was attended by Prime Minister of Lithuania Algirdas Butkevicius, Ukrainian Deputy Minister for Economic Development and Trade and Trade Representative of Ukraine Nataliya Mykolska, and ULIE President Anatoliy Kinakh.

Among the Ukrainian producers that showcased their products were Rito (knitwear), VDone (men’s clothing), Duna Vesta (hosiery), Courtage (workwear), Mira 2007 (women’s clothing), TK-Domtex (textile goods), Mida (footwear), Elig (textile goods), and others.

The ULIE and the Lithuanian Confederation of Industrialists will soon hold the second Ukraine-Lithuania business forum in Ukraine. The first forum, hosted by Vilnius in 2015, was attended by senior officials, business associations, and hundreds of entrepreneurs.

 

COOPERATION WITH EU SHOULD BE SYSTEMATIC, BACKED BY PROGRAMS

The European Union is not only a political and economic partner of Ukraine – close ties with the EU stipulated in the Association Agreement are also both a source and impetus to the transformation of the country, the acceleration of qualitative reforms in it. Presently, the EU accounts for 40% of our country’s foreign trade, its share of investment in Ukraine is significant.

However, the potential of this partnership is not used to the full extent. Many good initiatives and opportunities remain only declarations. And it is Ukraine that should be interested in their practical implementation most of all.

This was announced by President of the Ukrainian League of Industrialists and Entrepreneurs Anatoliy Kinakh during panel discussions titled “International Cooperation: Ukraine-Europe” at the Kyiv International Economic Forum (KIEF).

“While politicians, diplomats conclude agreements on some issues, businesses both in Ukraine and in the EU continue interaction. And the results are good: the largest business association in Europe – BusinessEurope, which incorporates business associations from 40 countries, has become our partner. Ukrainian interests in Brussels are lobbied by Ukrainian entrepreneurs’ representative office, which was opened by the ULIE. Contacts with the European Parliament, the European Commission, and business structures are handled through it. And do you know what we hear there? – ‘We are ready to cooperate in the economic sphere much more efficiently, but Ukrainians must present a convincing program of cooperation in required areas,'” he said.

The ULIE believes that it is systematic, program-backed cooperation with European and other international partners that could be conducive to a considerable acceleration in the modernization of Ukraine’s economy, the upgrading of production facilities, their adaptation to international standards and technical regulations.

“It is wrong to say that someone is waiting for us somewhere. The rules of competition work everywhere in the same way; and it is natural when they are fair, transparent, and correspond to generally accepted principles. Both Ukraine and its entrepreneurs should be prepared for this. This means that their ‘homework’ should be done along with the effective use of partners’ assistance to develop and offer high-quality, competitive products,” Anatoliy Kinakh said.

The leader of the business community believes that Ukraine should more actively develop the IT sector, to create technological and industrial parks, using innovative technologies. The ULIE has been preparing grounds for the implementation of this idea in partnership with national industrial and business organizations. Only in recent months, a series of business forums have been held in Italy, Austria, and Lithuania. What is more, agreements with business organizations from Turkey, Italy, Canada, and Serbia have been signed.

Ukraine’s capital has hosted the Kyiv International Economic Forum, which was co-organized by the ULIE. Traditionally, this event gathered well-known Ukrainian and international economists, top managers from large corporations, companies, as well as industrialists, and small- and medium-sized entrepreneurs. The Forum was opened by Prime Minister of Ukraine Volodymyr Groysman. In total, over 400 attendees visited the Forum this year, among them were General Director of the Directorate-General of the European Commission for Neighbourhood and Enlargement Negotiations Christian Danielsson, Ukrainian Minister for Economic Development and Trade Stepan Kubiv, Chairman of the Ukrainian parliamentary committee on industrial policy Viktor Halasyuk, ULIE President Anatoliy Kinakh, and well-known Norwegian economist Erik Steenfeldt Reinert.

The KIEF’s main goal is to develop a strategy for reforming Ukraine’s economy based on new approaches to education, science and development of priority sectors and “points of growth,” by consolidating representatives of businesses, the government and the expert community.

In addition, the Forum is a platform for holding business meetings and negotiations in the B2B format and signing new contracts. In particular, the ULIE strengthened its cooperation with the Turkish-Ukrainian Business Council, having signed a respective memorandum in the KIEF’s framework.